Oil: Prices guided by the geopolitics – Danske Bank

Kristoffer Kjær Lomholt, senior analyst at Danske Bank, points out that the Brent crude oil price closed above USD70/bbl for the first time since mid-November, following a late-session rally Friday.

Key Quotes

“The move came after a week that brought news of OPEC+ output cuts both in terms of compliance and optimism regarding an extension.”

“In addition, over the weekend, Libya’s UN-recognised government announced a counterattack (“volcano of anger”) on rebel leader Khalifa Haftar and his self-styled Libyan National Army (LNA) that has recently pushed towards Tripoli – the capital and the key city for the oil infrastructure.”

“The escalation in the conflict marks another risk to Libyan supplies (that did rise in March), which could yield more support to the oil price in a week that might also bring further progress in trade talks.”